cemmap top logo bar
publications
cemmap - home
links

subscribe to
our newsletter

publications
Subscribe to cemmap working papers via RSS or Atom feeds. RSS
Atom

2009 working papers
Single equation endogenous binary reponse models

Authors: Andrew Chesher
Publication type: cemmap Working Papers, CWP23/09
Publication date: August 2009
doi: 10.1920/wp.cem.2009.2309

This paper studies single equation models for binary outcomes incorporating instrumental variable restrictions. The models are incomplete in the sense that they place no restriction on the way in which values of endogenous variables are generated. The models are set, not point, identifying. The paper explores the nature of set identification in single equation IV models in which the binary outcome is determined by a threshold crossing condition. There is special attention to models which require the threshold crossing function to be a monotone function of a linear index involving observable endogenous and exogenous explanatory variables. Identified sets can be large unless instrumental variables have substantial predictive power. A generic feature of the identified sets is that they are not connected when instruments are weak. The results suggest that the strong point identifying power of triangular "control function" models - restricted versions of the IV models considered here - is fragile, the wide expanses of the IV model's identified set awaiting in the event of failure of the triangular model's restrictions.


< back | downloadpdf icon [728 KB]
 
 papers by year ..
2010
2009
2008
2007
2006
2005
2004
2003
logos
UCL Economics ESRC Institute for Fiscal Studies main menu about courses masterclasses conferences seminars publications people resources contact events calendar eurtn website